FICO Solution Helps Firms Manage Deluge of Payment Holiday Requests due to COVID-19
Around the world, governments and financial services providers are announcing payment holidays that help customers who have a cash crunch due to the pandemic. For example, the British government announced a three-month payment holiday for mortgages last month; the German Bundestag announced a payment holiday scheme which became effective 1st April; and several of
"Many of our customers are reporting as much as a month's worth of inbound customer requests for payment relief in a single day," said
The configuration of FICO® Customer Communication Services includes:
- Standalone inbound automated voice virtual agent to handle customer payment holiday information queries and actual customer payment holiday eligibility and opt-in.
- Interactive SMS 'chat' virtual agent establishing eligibility for a payment holiday, reason holiday required and customer opt in.
The delivery and set up of these scenarios can take place in just a few days.
"It's vital that people be able to approve payment holiday requests quickly in this anxious time," said Robinson. "In addition, banks will need to record this information not just to better support customers, but to manage and defend their impairment strategy under IFRS 9. Under relaxed IFRS 9 rules announced by many regulators, customers who don't make payment within 31 days because of a payment holiday aren't automatically recategorized as Stage 2 risks, requiring much higher impairments be set aside. This takes pressure off the collections team and also protects the bank's liquidity."
FICO® Customer Communication Services enables firms to deliver email, voice, text and mobile app notifications that are smart, scalable and include a human touch, thanks to FICO's ability to combine automation with analytics. By integrating CCS with FICO solutions, firms can effectively communicate with customers throughout the customer credit lifecycle.
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Julie Urquhart, FICO, T +44 (0) 207 940 0289, firstname.lastname@example.org, www.fico.com